September 8, 2010 (Chinavestor) Chinese indices followed U.S. markets lower on Wednesday, Hong Kong taking the lead. The Hang Seng Index (INDEXHANGSENG:.HSI) tumbled 312.9 points or -1.5 percent while the Shanghai Composite Index (SHA:000001) shed 3.1 points or 0.1 percent by the end of the trading day.
The sell-off was universal in Hong Kong, stock that fell outnumbered those that advanced six to one. China Mobile (HKG:0941) (NYSE:CHL), the largest mobile carrier in the world, fell 3.8 percent after Vodaphone confirmed its intention to sell her 3.2 percent stake in CHL. China Unicom (HKG:0762) (NYSE:CHU), the second largest Chinese mobile carrier, tumbled 4.1 percent. NYSE cross listed Yanzhou Coal (HKG:1171) (NYSE:YZAC) fell 2.8 percent.
Index futures point to a moderate open for U.S. equities after the broad sell-off on Tuesday. Investors are trying to shrug off European bank woes heading to Wednesday. If Hong Kong and the Hang Seng Index (INDEXHANGSENG:.HSI) can serve as a proxy for NYSE listed Chinese stocks, outlook is dim for China Mobile (NYSE:CHCL), and China Unicom (NYSE:CHU) from the telecom sector and Yanzhou Coal (NYSE:YZC) from the energy sector.
Shanda Interactive (NASDAQ:SNDA) and Shanda Games (NASDAQ:GAME) are going to report second quarter earnings after the close today. Shanda Games (NASDAQ:GAME) is the second largest Chinese online game developer and operator after NetEase.com Inc. (NASDAQ:NTES) and as such will have a significant impact on the sector.